The UK Government has partnered with the Lloyd’s market on an insurance scheme to provide pandemic-related cancellation cover for live events.

The scheme will be delivered through insurers, alongside standard policies, with event organisers able to purchase cover for government-enforced cancellations resulting from COVID-19 restrictions.

“The events sector supports hundreds of thousands of jobs across the country, and I know organisers are raring to go now that restrictions have been lifted,” Chancellor of the Exchequer Rishi Sunak said.

“But the lack of the right kind of insurance is proving a problem, so as the economy re-opens I want to do everything I can to help events providers and small businesses plan with confidence right through to next year.”

The Live Events Reinsurance Scheme will see the government stepping in with a guarantee to make sure insurers can offer products events companies need.

Lloyd’s market insurers including Arch, Beazley, Dale, Hiscox and Munich Re are supporting the scheme, which will start from next month and run through to the following September.

If events do have to cancel, after organisers have covered the agreed excess, the government and insurers have an agreed risk share per claim.

This starts with government paying 95% and insurers 5%, progressing to 97% and 3% respectively and finally government covering 100% of costs. The split depends on the losses incurred by the insurer from the scheme to date.